The Financial Services Act 2021 has given the FCA an additional power, allowing it to more quickly and efficiently:
- vary or cancel the statutory permissions to conduct FCA-regulated activities of many FCA-authorised firms, where those firms:
- appear to be carrying on no FCA-regulated activities for which they have permission, and
- have not responded to the FCA’s notices warning of the risk of such action, and
- reflect such variations and cancellations on the Financial Services Register
The FCA is therefore consulting on changes to its Handbook and Enforcement Guide which reflect the new power and provide guidance on how it will be used. The proposals also provide guidance on the possibility that the FCA may, when relevant firms apply, reverse or annul its decisions to use the new power.
The consultation closes on 29 October 2021.